Group 1 - Credo Technology Group Holding Ltd. (CRDO) is a notable stock in the Computer and Technology sector, which consists of 607 individual stocks and holds a Zacks Sector Rank of 5 [2] - The Zacks Rank system indicates that CRDO currently has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook for the stock [3] - Over the past three months, the Zacks Consensus Estimate for CRDO's full-year earnings has increased by 43.3%, indicating improved analyst sentiment and earnings outlook [4] Group 2 - CRDO has achieved a year-to-date return of approximately 45.2%, significantly outperforming the average gain of 8.1% in the Computer and Technology group [4] - In comparison, IBM, another stock in the sector, has a year-to-date return of 32% and a Zacks Rank of 2 (Buy) [5] - CRDO belongs to the Electronics - Semiconductors industry, which includes 44 stocks and is currently ranked 82 in the Zacks Industry Rank, with an average gain of 15% this year [6] Group 3 - The Computer - Integrated Systems industry, where IBM is categorized, has 11 stocks and is ranked 32, with a year-to-date increase of 26.1% [7] - Both CRDO and IBM are highlighted as stocks to watch in the Computer and Technology sector due to their strong performance [7]

Core Viewpoint - PTC Inc. has experienced a significant increase in share price due to potential buyout interest from Autodesk, alongside strong financial forecasts and growth in product offerings [2][3]. Financial Performance - PTC shares ended the last trading session 17.6% higher at $210.47, with a notable trading volume [1] - The company has increased its free cash flow forecast for fiscal 2025 to $840-$850 million, reflecting a growth of 14-16% from the previous estimate [3] - Revenues for fiscal 2025 are projected to be between $2,445 million and $2,565 million, indicating a year-over-year rise of 6-12% [3] - Non-GAAP EPS is now estimated in the range of $5.80-$6.55, suggesting a rise of 14-29% [3] - The upcoming quarterly earnings are expected to be $1.22 per share, representing a year-over-year change of +24.5%, with revenues expected at $582.38 million, up 12.3% from the previous year [4] Market Position and Strategy - PTC is focused on mission-critical products and emphasizes verticalized go-to-market strategies to meet customer needs effectively [3] - The company is expanding its product portfolio to capture new customers in emerging IoT and AR/VR markets, with plans to integrate generative AI into its offerings [4] Industry Context - PTC Inc. belongs to the Zacks Computer - Software industry, which includes other companies like Simulations Plus [6] - Simulations Plus has seen a significant change in its EPS estimate, reflecting broader trends within the software industry [7]

Core Insights - The global PC market is projected to see a year-on-year shipment increase of 7.4% in Q2 2025, reaching 67.6 million units, driven primarily by commercial PC deployments ahead of the Windows 10 service termination [1][3] Market Overview - Total shipments for Q2 2025 include 53.9 million notebooks (up 7%) and 13.7 million desktops (up 9%) [1] - The growth is attributed to large-scale commercial deployments as businesses prepare for the end of Windows 10 support, despite weak consumer demand due to macroeconomic uncertainties [1][3] Supply Chain Dynamics - The evolving tariff policies under the Trump administration are reshaping the global PC supply chain, leading to a significant shift in PC imports from China to Vietnam [3] - Uncertainties remain regarding potential tariffs on products manufactured in Vietnam using Chinese components, complicating the supply chain landscape [3] Market Leaders - Lenovo maintains its position as the global PC market leader with shipments of 17 million units, a year-on-year increase of 15.2% [3][4] - HP follows in second place with 14.1 million units shipped, reflecting a growth rate of 3.2% [4] - Dell ranks third with 9.8 million units, showing a decline of 3.0% [4] - Apple and Asus rank fourth and fifth, with Apple achieving a significant growth rate of 21.3% and Asus at 18.4% [3][4] Future Outlook - A survey indicates that over half of the channel partners expect their PC business to grow year-on-year in the second half of 2025, with 29% anticipating growth exceeding 10% [3] - The consumer PC market is expected to see growth in 2026 as delayed purchasing decisions from consumers are anticipated to align with natural replacement cycles of devices bought during the pandemic [3]

Company Performance - IonQ, Inc. closed at $45.56, reflecting a +1.31% increase from the previous day, outperforming the S&P 500 which gained 0.61% [1] - Over the past month, IonQ's shares have increased by 13.16%, while the Computer and Technology sector gained 5.6% and the S&P 500 gained 3.85% [1] Upcoming Earnings - IonQ is expected to report an EPS of -$0.13, which indicates a 27.78% improvement compared to the same quarter last year [2] - The consensus estimate for revenue is projected at $17.02 million, representing a 49.56% increase from the equivalent quarter last year [2] Full Year Projections - For the full year, earnings are projected at -$0.6 per share and revenue at $85 million, reflecting increases of +61.54% and +97.34% respectively from the previous year [3] Analyst Estimates - Changes in analyst estimates for IonQ are important as they reflect short-term business trends, with upward revisions indicating positive sentiment towards the company's operations [4] - A recent 26.95% decline in the Zacks Consensus EPS estimate has been noted, and IonQ currently holds a Zacks Rank of 3 (Hold) [6] Industry Context - The Computer - Integrated Systems industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 23, placing it in the top 10% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - Dell Technologies' stock increased by 1.8% to $126.63, outperforming the S&P 500's gain of 0.61% for the day [1] - Over the last month, Dell's shares rose by 9.84%, exceeding the Computer and Technology sector's gain of 5.6% and the S&P 500's gain of 3.85% [1] Group 2 - Dell Technologies is expected to report earnings per share (EPS) of $2.28, reflecting a 20.63% increase from the prior-year quarter, with projected revenue of $29.14 billion, a 16.45% rise from the same quarter last year [2] - For the full year, earnings are projected at $9.44 per share and revenue at $103.87 billion, representing increases of 15.97% and 8.69% respectively from the prior year [3] Group 3 - Recent modifications to analyst estimates indicate positive sentiment regarding Dell's business and profitability [4] - The Zacks Rank system, which rates stocks from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Dell Technologies as 1 (Strong Buy), with an average annual return of +25% for 1 rated stocks since 1988 [6] Group 4 - Dell Technologies has a Forward P/E ratio of 13.17, which is a premium compared to the industry average Forward P/E of 11.76 [7] - The company has a PEG ratio of 1.04, while the Computer - Micro Computers industry has an average PEG ratio of 1.57 [7] Group 5 - The Computer - Micro Computers industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 90, placing it in the top 37% of over 250 industries [8]

Core Insights - Oracle Corporation has reached a pivotal moment with the launch of Oracle Database@AWS, establishing itself as a key player in bridging traditional enterprise computing and AI-driven cloud infrastructure [1][4] - The stock has increased by 43% year-to-date, reflecting successful execution of its cloud transformation strategy, with a forward P/E ratio of 17.7x amid high growth expectations [1] Financial Performance - In Q4 2025, Oracle reported total revenues of $15.9 billion, an 11% year-over-year increase, with cloud infrastructure revenue growth accelerating to 52% [2][9] - The company raised its fiscal 2026 guidance, projecting revenues exceeding $67 billion (16% growth) and cloud infrastructure growth surpassing 70% [2][8] - Oracle's remaining performance obligations (RPO) backlog stands at $138 billion, providing significant revenue visibility [2][10] Strategic Developments - The Oracle Database@AWS launch is a strategic completion of Oracle's "infrastructure anywhere" vision, allowing for native Oracle database services within AWS data centers [4] - Key differentiators include zero-ETL integration capabilities and Oracle Database 23ai with AI Vector Search, enhancing customer experience [5] - The partnership with AWS completes Oracle's coverage across all major cloud providers, addressing the trend of enterprises using multiple cloud services [6] Growth Drivers - Oracle's cloud services revenues reached $6.7 billion in Q4 2025, up 27% year-over-year, with cloud infrastructure revenues at $3.0 billion [7] - The company anticipates cloud infrastructure growth exceeding 70% in fiscal 2026, indicating strong demand for its services [8] - Oracle's infrastructure expansion includes 47 new data centers under construction, reflecting high customer demand for cloud capacity [13] Competitive Positioning - Oracle's strategic focus on AI infrastructure positions it as a critical enabler for enterprise AI adoption, highlighted by a $30 billion annual cloud deal with OpenAI [11] - The introduction of over 300 new AI-focused features in Oracle Database 23ai allows for running AI workloads alongside traditional database operations [12] - Oracle's premium valuation is reflected in its three-year EV/EBITDA multiple of 28.93x, above the industry average of 20.12x [14] Market Performance - Oracle shares have gained 40.4% year-to-date, outperforming the Zacks Computer and Technology sector's growth of 7% [17] - The company is viewed as a compelling long-term investment opportunity for those seeking exposure to AI infrastructure and enterprise cloud transformation [19]

Core Insights - Dell Technologies (DELL) is showing strong upward momentum, trading above its 200-day and 50-day simple moving averages, indicating price stability and a long-term bullish trend [1][4] - The stock has gained 8% year-to-date, outperforming the broader Zacks Computer and Technology sector, which increased by 7%, while the Zacks Computer - Micro Computers industry declined by 15.6% [5][9] - Strong demand for AI servers and cloud offerings has driven significant revenue growth, with ISG revenue increasing by 12% year-over-year [9][13] Financial Performance - DELL expects Q2 FY26 revenue between $28.5 billion and $29.5 billion, indicating solid double-digit growth [9][18] - Non-GAAP earnings are projected at $2.25 per share, reflecting a 15% growth at the mid-point [19] - The Zacks Consensus Estimate for Q2 FY26 revenues is $29.14 billion, suggesting a year-over-year growth of 16.45% [18] Market Position - DELL's shares are considered undervalued, with a forward 12-month price-to-sales ratio of 0.79X compared to the sector's 6.58X [20] - The company has a Zacks Rank 1 (Strong Buy) and a Growth Score of B, indicating a favorable investment opportunity [23] Strategic Developments - DELL's expanding portfolio includes high-demand AI-optimized servers, contributing to a $12.1 billion increase in orders in the fiscal first quarter of 2026 [11][10] - The company is enhancing its cloud computing footprint through its APEX platform, which provides multi-cloud solutions and advanced AI infrastructure [12][13] - Partnerships with companies like Lowe's and Worley are enhancing DELL's capabilities in AI and cloud services [15][16][17]

Core Viewpoint - BofA Securities analyst Ruplu Bhattacharya initiated coverage on Super Micro Computer (SMCI) with an Underperform rating and a price target of $35, indicating a potential downside of approximately 29% due to rising competition and margin pressures in the AI server market [1][5]. Group 1: Competitive Landscape - Super Micro faces increasing competition in the AI server and rack market, particularly from Dell Technologies and Hewlett-Packard Enterprise, which have a competitive edge with enterprise clients [3]. - The analyst noted that limited access to key components such as GPUs and liquid cooling systems could hinder Super Micro's revenue growth [2]. - Bhattacharya highlighted that liquid cooling technology may become commoditized over time, potentially diminishing Super Micro's current manufacturing advantage [3]. Group 2: Financial Projections - The price target of $35 is based on a 13x multiple of the estimated 2026 EPS of $2.67, reflecting a projected 13% compound annual net income growth from fiscal 2024 to 2027 [5]. - For the upcoming fourth quarter, revenue is forecasted at $5.94 billion with an adjusted EPS of 73 cents [9]. Group 3: Market Position and Valuation - Despite strong AI server revenue growth, Super Micro is viewed as a "show-me" story due to past volatility and execution risks, leading to a higher multiple of 13x compared to the 9x median for OEM peers [6][7]. - Bhattacharya modeled Super Micro's operating margins to be slightly below those of North American EMS and Asian ODM peers, with expectations that this gap will widen as competition intensifies [8].

Core Insights - Vertiv (VRT) is becoming a significant player in the global AI infrastructure sector, providing advanced power and thermal solutions for high-density computing environments [1] Group 1: Financial Performance - Vertiv's backlog reached $7.9 billion in Q1 2025, representing a 25% year-over-year increase and a 10% sequential rise [2][11] - Revenues increased by 24.2% year-over-year to $2.04 billion, with a book-to-bill ratio of 1.4X, indicating strong order demand from hyperscalers and colocation providers [2] - For 2025, Vertiv anticipates revenues between $9.325 billion and $9.575 billion, suggesting an 18% growth at the midpoint, with organic net sales growth projected between 16.5% and 19.5% [4][11] - The Zacks Consensus Estimate for Vertiv's 2025 earnings is $3.56 per share, reflecting a 24.91% year-over-year increase [12] Group 2: Market Dynamics - The demand for AI-ready infrastructure is driving Vertiv's order momentum, supported by ongoing investments in R&D and capacity [3][11] - Vertiv's collaboration with NVIDIA on GB200 and GB300 reference designs is a key growth driver, enhancing its role in large-scale infrastructure deployments [3] - Competition is intensifying from companies like Super Micro Computer and Dell Technologies, both of which are scaling their offerings to meet the rising demand for AI infrastructure [5][6][7] Group 3: Stock Performance and Valuation - Vertiv's shares have increased by 10.8% year-to-date, outperforming the broader Zacks Computer & Technology sector, which rose by 7% [8] - The stock is trading at a premium with a trailing 12-month Price/Book ratio of 17.99X compared to the sector's 10.2X, indicating a higher valuation [9]

Core Insights - MicroStrategy (MSTR) has announced a $4.2 billion at-the-market offering of its 10% Series A Stride Preferred Stock (STRD), reinforcing its position as the largest corporate holder of Bitcoin with over 597,000 BTC valued at more than $63 billion as of July 7 [1][9] Company Strategy - The company aims for a 25% Bitcoin yield and $15 billion in Bitcoin dollar gains, an increase from previous targets of 15% and $10 billion [3][9] - MSTR's disciplined capital raising approach through preferred equity offerings is a key catalyst for its strategy [4] Market Performance - MSTR shares have surged 36.7% year to date, outperforming the Zacks Computer – Software industry's growth of 16.4% and the broader Zacks Computer and Technology sector's return of 7% [7][9] Competitive Landscape - MARA Holdings (MARA) is the second-largest corporate holder of Bitcoin with 48,000 BTC as of April 2025, trading at a more attractive price/book ratio of 1.58X compared to MSTR's 3.36X [5] - Riot Platforms (RIOT) is another major Bitcoin miner that raised $500 million via convertible notes to expand its BTC holdings, focusing on physical AI compute infrastructure alongside its crypto mining operations [6] Financial Estimates - The Zacks Consensus Estimate for MSTR's 2025 loss is pegged at $15.73 per share, indicating a steep year-over-year decline of 134.08% [14]